Beach Hits a Few Snags in Cost and Target Objectives at Waitsia

Beach Energy has had to revise its previous targeted schedule and capital estimates for the Waitsia Stage 2 Project in the Perth Basin.

In an update to the market, the Adelaide-headquartered E&P company said that following completion of the Clough Limited voluntary administration process and the subsequent agreement with Webuild SpA to complete delivery of Waitsia Stage 2, the project had hit a few speedbumps.

“Since then, the tight labour market in Western Australia in particular has impacted construction progress at the Waitsia Gas Plant to create a range of uncertainty in outcomes that means Beach no longer considers it prudent or appropriate to maintain its previously targeted schedule and capital estimates,” Beach said in a media release.

The company added that a review of cost and schedule by the Waitsia Joint Venture operator and Webuild was ongoing “to identify and implement opportunities to mitigate impacts on the project and constrain the range of uncertainty”.

Beach will provide an update when this review is concluded and emphasised that the Waitsia project remained a key element in its future growth.